As financial pressures mount, Vancouver’s Mountain Equipment Co. (MEC) is under fire from suppliers over unpaid bills, with several lawsuits filed and the company reportedly exploring a sale for the second time in five years.
Several suppliers of the iconic Canadian outdoor retailer MEC say the company is behind on payments, prompting a wave of lawsuits from businesses large and small. The financial strain comes as the 54-year-old company is rumored to be seeking a corporate sale, its second in half a decade.
Lever Style Files $1.3M Lawsuit The most significant legal action comes from Hong Kong-based Lever Style Ltd. , which filed a lawsuit in the B.C. Supreme Court on February 12 seeking more than $1.3 million. Lever Style Ltd. alleges that MEC failed to fully pay dozens of invoices sent in September and October.
According to the notice of civil claim, MEC paid Lever Style Ltd. US$295,997.67, but US$917,452.77 remains outstanding.
The lawsuit states that MEC has “acknowledged liability for the outstanding balance,” but “asserted that the only reason the outstanding balance has not been paid is because MEC and/or MEC Holdings does not have the financial capabilities to pay.” MEC Response and Sale Rumors MEC spokeswoman Jo Salamon responded to inquiries from BIV, stating, “as MEC is a privately held company, it doesn’t comment on business.” She added , “regarding speculation on MEC being sold—there is no news to share.” Other suppliers have filed lawsuits for smaller amounts.
Jonathan Cotton, director of operations at FixnZip (an Oregon-based maker of zipper repair kits), said , “Our outstanding invoice is for a whopping US$2,100 so it is nothing like that million-dollar lawsuit.”…
